- Grayscale has introduced two new investment trusts focused on Bitcoin Layer 2 projects.
- These trusts include exposure to NEAR Protocol and Stacks, expanding Grayscale’s crypto offerings.
- Grayscale recently updated its Spot Ethereum ETF filing, anticipating a decision from the SEC.
Discover Grayscale’s latest crypto investment trusts featuring Bitcoin Layer 2 projects like NEAR Protocol and Stacks, and get insights into their updated Spot Ethereum ETF filing.
Grayscale Unveils New Investment Trusts for Bitcoin Layer 2 Projects
Grayscale, a leading asset manager, has launched two new investment trusts that provide accredited investors with access to Bitcoin Layer 2 networks, including Stacks and NEAR Protocol. These new trusts join Grayscale’s extensive portfolio of crypto-focused investment products, which already includes funds dedicated to Solana (SOL), Chainlink (LINK), and other prominent cryptocurrencies.
Stacks and NEAR Protocol: Expanding Bitcoin’s Capabilities
Stacks, a Bitcoin Layer 2 network, enhances Bitcoin by adding smart contract functionality, enabling the development of decentralized finance (DeFi) applications on the platform. The network has gained significant traction recently, particularly following the rollout of its Nakamoto upgrade last month. Kyle Ellicott, Stacks’ Investor Relations Lead, highlighted the growing institutional interest, stating, “Within the Stacks ecosystem, we’re witnessing a robust increase in demand from institutions. The greater Bitcoin ecosystem is seeing similar demand as that wide gap continues to lessen around unlocking Bitcoin liquidity and making it more usable.”
NEAR Protocol, introduced in 2020, is a high-speed blockchain designed for decentralized cloud computing. Recently, NEAR announced the establishment of a new research and development lab focused on artificial intelligence (AI), further enhancing its capabilities and appeal to investors.
Grayscale’s Strategic Vision and Future Plans
Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, emphasized the firm’s commitment to meeting investor demand for diversified crypto asset exposure. “With continued demand for diversified crypto asset exposure, Grayscale remains committed to launching new products that enable investors to access emerging and evolving parts of the crypto ecosystem,” she said, according to a report by Decrypt.
Grayscale describes its private placements as the initial stage in the lifecycle of its products, with the ultimate goal of converting them into exchange-traded funds (ETFs). Currently, the Grayscale Bitcoin Trust (GBTC) is the only product to have achieved ETF status, following its approval among other Spot Bitcoin ETFs in January. The organization is also seeking SEC approval to convert its Ethereum Trust into an ETF.
Amendments to Ethereum ETF Application
On Wednesday, May 22, Grayscale submitted an updated 19b-4 filing for its proposed Spot Ethereum ETF application. Bloomberg Senior ETF Analyst James Seyffart disclosed this update on X, noting that the company initially amended the application on May 21. The crypto community is closely watching as the United States Securities and Exchange Commission (SEC) is anticipated to approve Spot Ethereum ETF applications today. The swift change in the SEC’s approach suggests that this could be a historic moment with these approvals. Moreover, Grayscale is meticulously avoiding any potential errors in its application.
In the updated filing, Grayscale has removed the “staking” clause from its Spot Ethereum ETF proposals. This demonstrates the company’s careful consideration of the SEC’s guidelines as the agency allegedly plans to leverage the dynamics of ETH and staked ETH. Furthermore, the focus on the 19b-4 form is crucial, as it is the first step the SEC will approve in the process leading to the actual launch. Additionally, the frequent updates to the filing may reflect ongoing communication between the SEC and the ETF applicants, incorporating feedback from the regulator.
Conclusion
Grayscale’s introduction of new investment trusts focused on Bitcoin Layer 2 projects like Stacks and NEAR Protocol underscores the firm’s commitment to providing diversified crypto asset exposure. As the company continues to innovate and expand its product offerings, it remains a key player in the evolving crypto ecosystem. With the anticipated approval of Spot Ethereum ETF applications by the SEC, Grayscale is poised to further solidify its position in the market, offering investors new opportunities to engage with emerging blockchain technologies.
